Pound Euro Exchange Rate Recovers from 8-Year-Low

LONDON: The Pound Euro exchange rate slipped yesterday as investors reacted to the latest Brexit uncertainties and tensions while the Euro benefitted from European Central Bank (ECB) speculation. However, the pair rebounded from its lows as markets anticipated upcoming data.

GBP EUR dropped from 1.0944 to 1.0803 last week. Tuesday saw the pair hit 1.0745 – its lowest level since 2009 – but the pair has since recovered and now trends closer to Monday’s opening levels again.

The Pound’s weak-streak has continued in recent sessions. Investors have seen little reason to buy the British currency amid a lack of optimistic domestic data and persistent Brexit uncertainties.

Sterling tumbled to its worst levels since 2009 against the Euro yesterday, as investors digested the latest Brexit developments.

While the UK government published a series of Brexit papers over the weekend, containing stances on some key negotiation points, EU officials have expressed disappointment with the papers.

The EU’s Brexit chief negotiator, Michel Barnier, asked Britain to begin negotiating more seriously, while European Commission President Jean-Claude Juncker indicated he was unsatisfied by the lack of certain details in the report.